ICICI Bank’s Q2 net profit down 28% to Rs 655 cr

By Sarkaritel October 28, 2019 06:59

Mumbai, Oct 28  Private sector lending major ICICI Bank on Saturday reported a 27.94 per cent decline in its standalone net profit for the second quarter of 2019-20, due to higher tax expenses.

The bank’s net profit in Q2 declined to Rs 655 crore from Rs 909 crore in the year-ago quarter.

The lender’s tax expense during the quarter under review rose to Rs 3,712 crore from Rs 347 crore reported for the corresponding quarter of last fiscal, on the back of one-time additional charge of Rs 2,920 crore due to re-measurement of accumulated deferred tax assets consequent to a reduction in marginal tax from 35 per cent to 25 per cent.

Excluding the impact of one-time additional charge, profit after tax would have been Rs 3,575 crore in Q2FY20 against Rs 909 crore in Q2FY19, the bank said in a statement here on Saturday.

However, the bank’s net interest income (NII) during the quarter rose to Rs 8,057 crore from Rs 6,418 crore during the year-ago quarter.

The net interest margin was 3.64 per cent in Q2FY20 against 3.61 per cent in Q1FY20 and 3.33 per cent in Q2FY19, the private sector lending major said.

The bank’s provisions, excluding taxes, declined by 37 per cent year-on-year to Rs 2,507 crore in Q2FY20 from Rs 3,994 crore in Q2FY19.

“Net non-performing asset ratio decreased from 1.77 per cent on June 30, 2019 to 1.60 per cent on September 30, 2019, the lowest in the last 15 quarters,” the statement said.

“Net NPAs decreased by 51 per cent from Rs 22,086 crore on September 30, 2018 to Rs 10,916 crore on September 30, 2019.”

In addition, the bank reported a decline in its consolidated profit after tax, which fell to Rs 1,131 crore from Rs 2,514 crore in Q1 of 2019-20 and Rs 1,205 crore in Q2, 2018-19.

“Consolidated assets grew by 13.3 per cent year-on-year to Rs 1,288,190 crore on September 30, 2019 from Rs 1,136,942 crore on September 30, 2018,” the statement said.

By Sarkaritel October 28, 2019 06:59